Check Before You Invest : ACC Ltd

Snapshot

Q.1 Which industry/sub-sector does ACC Ltd belong to?

ACC Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Cement & Construction Materials segment.

Q.2 Is ACC Ltd a good quality company?

ACC Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is ACC Ltd undervalued or overvalued?

ACC Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is ACC Ltd a good buy now?

ACC Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of ACC Ltd?

ACC Ltd revenue growth is 9% for FY-2025, which is above its 5-year CAGR of 6.81%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of ACC Ltd?

ACC Ltd Return on capital employed is 18.55% for FY-2025, which is in line with its 5-year historical median of 18.55%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.3 Return on Asset of ACC Ltd?

ACC Ltd Return on Asset is 9.85%, which is in line with its 5-year historical median of 9.5%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of ACC Ltd?

ACC Ltd Return on equity is 13.77% for FY-2025, which is in line with its 5-year historical median of 13.77%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of ACC Ltd?

ACC Ltd Cash conversion cycle is 8 days, above its 5-year historical median of -1 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.04	1.01
ROE	13.77	13.77
ROCE	18.55	18.55
Cash Conversion Cycle	8 days	-1 days

Q.6 Gross Profit margin of ACC Ltd?

ACC Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.9% for FY-2025, which is in line with its 5-year median of 15.9%, indicating stable margins.

Q.7 Operating Profit Margin of ACC Ltd?

ACC Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.07% for FY-2025, which is below its 5-year median of 15.34% indicating decreasing margins.

Q.8 Net Profit Margin of ACC Ltd?

ACC Ltd Net Profit Margin is 11.04% for FY-2025, is in line with with its 5-year median of 11.04%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	15.9	15.9
Operating Profit Margin	14.07	15.34
Net Profit Margin	11.04	11.04

Q.9 Debt to Equity ratio of ACC Ltd?

ACC Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.39, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of ACC Ltd?

ACC Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of ACC Ltd?

Promoters hold 56.69% of the ACC Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of ACC Ltd vs industry peers?

ACC Ltd revenue CAGR is 6.81%, compared to the industry median CAGR of 6.22%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	9	6.2
Gross Profit Growth	18.4	NAN
Operating Profit Growth	-0	-3.8
Net Profit Growth	2.9	-9.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.04	0.82
ROE	13.77	7.62
ROCE	18.55	9.4
Cash Conversion Cycle (days)	8.42	23

Valuation & price assessment

Q.1 Stock return of ACC Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of -5.61% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-5.6%	-6.6%	-23.7%

Q.3 Valuation ratios of ACC Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	12.5	21.82	22.85
Price to Book	1.3	2.44	1.92
Price to Sales	1.03	1.96	1.40
EV to EBITDA	7.8	11.51	11.62

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